Good piece on NAN who are sponsoring an event on change management and standardisation in probe processing.
https://www.businesswire.com/news/home/20190925005017/en/Nanosonics%E2%80%99-Symposium-SDMS-Offers-Sonographers-Guide-StandardizingExcept from an interview with Ken Shaw - “The adoption of trophon2 in North America continues to expand as larger institutions implement and standardize HLD. Just recently, a large pediatric teaching hospital ordered 21 trophon2 systems and a nation-wide cancer center ordered 80 systems. These recent orders, along with multiple other institutions implementing our technology, underscores the vital importance of optimized probe decontamination throughout hospitals and clinics.”
NAN is laying the foundations of a long duration business. with substantial reinvestment to come. The Trophon technology has become the standard of care for HLD with 20,000 units installed compared to a market opportunity of 120.000. It's 'Wide and Deep' execution strategy has been exceptional so far and in my view, management will maintain this excellence in gaining market footprint. With the new product pipeline coming through one could reasonably assuming they really planning to leverage on their existing presence and really stamp a competitive advantage in this space. Fortress like balance sheet with no debt and circa $72 m in cash, a market cap of $1.9 billion in my humble opinion is undemanding. High quality re-occurring annuity type earnings streams through the consumables sales, which means expansion in the installed base really turbo charges these future ongoing. Plenty of cash to fund future product innovation.
I'm a long term fundamental focused investor and what we are looking at today is a genuine earnings compounder in the making with a terrific future. All things being equal, this should be able to exponentially increase its market cap as it diversifies its product base and evolves. Day to day price moves mean nothing in the context of what's on the horizon in 5 - 10 years time if they can maintain this growth. Will easily command a double digit market cap and create so much value for shareholders.
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